The PCAOB has released a supplement to its 2013 staff guidance on the remediation process for audit firms.
The new guidance emphasizes the importance of addressing quality control criticisms. The supplement encourages firms to start remediation early, plan for feedback from inspections staff and consider non-technical factors that may affect quality control.
First published in 2013, the original staff guidance provides information for accounting firms receiving a final audit inspection report from the PCAOB that includes any criticism of the firm’s system of quality control.
As mandated by the Sarbanes-Oxley Act and implemented by PCAOB rules, the board can’t disclose its criticisms of an audit firm’s quality control systems for at least 12 months after the PCAOB’s initial publication of its inspection report of that audit firm. Read more.